Financial Data and Key Metrics Changes - Revenue for Q4 2019 increased by 4% to 1.4billion,withwholesalesalesup274 million, with a net loss of 15millionor0.03 diluted loss per share [33] Business Line Data and Key Metrics Changes - Apparel revenue was relatively flat, footwear revenue increased by 10%, and accessories revenue was up 2% [29] - Licensing revenue surged by 36%, primarily due to contractual royalty minimums and one-time settlements [29] - Direct-to-consumer revenue growth was offset by declines in North America, with international business showing stronger performance [30][31] Market Data and Key Metrics Changes - North America revenue was up 2%, driven by licensing and wholesale channels, while EMEA and Asia-Pacific saw revenue increases of 2% and 10% respectively [30][31] - Latin America revenue increased by 12%, benefiting from growth in both wholesale and direct-to-consumer channels [31] - Connected fitness business revenue rose by 16% to 35million,drivenbysubscriptionstrength[31]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusedonathleticperformanceandaimstoenhancebrandauthenticitythroughinnovativeproductsandexperiences[7][9]−Astrategicoperationalandculturaltransformationisunderway,althoughitistakinglongerthananticipated[7][8]−Thecompanyplanstoinvestheavilyindigitalandmarketingtoincreasebrandawarenessandconsumerengagement[16][19]Management′sCommentsonOperatingEnvironmentandFutureOutlook−ManagementexpressedconcernsoversofterdemandinNorthAmericaandtheimpactofthecoronavirusoutbreakonoperationsandfinancials[11][12]−Theinitialoutlookfor2020anticipatesalow−single−digitdeclineinglobalrevenue,withasignificantimpactexpectedfromtheAPACregionduetothecoronavirus[15][36]−Managementemphasizedtheneedforcontinuedoperationalimprovementsandafocusonbrandmarketingtodrivegrowth[39][40]OtherImportantInformation−Thecompanyreporteda41788 million and a 19% decrease in total debt to 593million[35]−Apotentialrestructuringplanisbeingassessed,whichcouldinvolvepre−taxrestructuringchargesof325 million to $425 million [40] Q&A Session Summary Question: What would you have done differently regarding North America growth? - Management acknowledged that it is taking longer than expected to regain shelf space and emphasized the importance of timing in their transformation efforts [46][49] Question: When will the mix of full-price to off-price sales be comfortable? - Management indicated that they are on a journey to reduce off-price sales and are excited about the marketing campaign to support this transition [51][54] Question: What is the outlook for the DTC channel and store development? - Management plans to open approximately 275 doors globally, with a focus on new Brand House and Factory House formats, while being cautious about the impact of the coronavirus [61][63]
Under Armour(UA)2020-02-11 17:55